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Sorry Russell 2000, The Caracas Stock Market Shows How It's Done

Tyler Durden's picture


The corks are popping, new valuation metrics are confirming the buy signals, and everyone's a stock-picking genius... that is the image projected by CNBC USA (and Europe) as the Russell 2000 is now up 30.6% year-to-date. However, we can only imagine the elation, exuberance, and ecstasy that would be seen day in and day out in at CNBC Venezuela as the Caracas Stock Index rises its most in a month to a new all-time record high and is now up 312.5% year-to-date...



Coming to another 'banana republic' soon...


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Fri, 10/18/2013 - 13:07 | Link to Comment JPM Hater001
JPM Hater001's picture

We're such rookies at hyper-inflation.

Fri, 10/18/2013 - 13:41 | Link to Comment game theory
game theory's picture

The Fed has deflated the inflation index with all that "chain-weighted" nonsense.  By my reckoning, we aren't getting the proper credit we deserve. 

Fri, 10/18/2013 - 14:20 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

Both VIX and SPX have been marching higher today at 45 degree angle for two+ hours now.

Fri, 10/18/2013 - 14:12 | Link to Comment socalbeach
socalbeach's picture

True. If money printing were an Olympic sport, the Bernank wouldn't make it past the first qualifying round.

Fri, 10/18/2013 - 13:08 | Link to Comment Yen Cross
Yen Cross's picture

   The fuckers had to nationalize their toilet paper manufacturing, so I'm not surprised.

Fri, 10/18/2013 - 13:13 | Link to Comment Grande Tetons
Grande Tetons's picture

Caracus or Carcus? 

Fri, 10/18/2013 - 13:15 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Meanwhile Ed Snowden is hanging with former CIA analysts in an undisclosed part of Russia.

Because he is former CIA?  What was the word on 9/11 again, Ed?

Fri, 10/18/2013 - 13:13 | Link to Comment orez65
orez65's picture

"... nationalize their toilet paper manufacturing ..."

Nationalizing their toilet paper manufacturing means that in a few months they'll be wiping their asses with their fingers!!

Fri, 10/18/2013 - 13:34 | Link to Comment earnyermoney
earnyermoney's picture

Or their currency.

Fri, 10/18/2013 - 13:08 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

So the 'experts' will start recommending you buy buy buy the Caracas index in 3...2.....

Fri, 10/18/2013 - 13:10 | Link to Comment bdub2
bdub2's picture

We'll catch up...Yellen doing her stretches we speak...leotard and leg-warmers getting a healthy workout no doubt!

You're welcome for the vision.


Fri, 10/18/2013 - 13:28 | Link to Comment smlbizman
smlbizman's picture

i hope they are not the see thru kind......and fuck you for putting that pic in my mind...

Fri, 10/18/2013 - 13:10 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Is Maduro about to die?

Fri, 10/18/2013 - 13:13 | Link to Comment thismarketisrigged
thismarketisrigged's picture

so far today-


fb- up 4 percent

amzn- up 6 percent

goog- up  13 percent

lnkd- up 4 percdent

yelp- 8 percent

no bubble to see here, lol.

Fri, 10/18/2013 - 13:13 | Link to Comment youngman
youngman's picture

They are very very close to devaluing their currency..actually its the daily talk down here in Colombia....its not if..its when....

Fri, 10/18/2013 - 15:31 | Link to Comment MisterMousePotato
MisterMousePotato's picture

Official exchange rate is 6.50 to the dollar, but anywhere on the street, you'll get 50 for a dollar (which is, incidentally, up from about nine, I think, from the last time Venezuela's currency problems were in the news, which was only about six or eight months ago, if I recall correctly).

Fri, 10/18/2013 - 13:14 | Link to Comment syntaxterror
syntaxterror's picture

Government-based stock markets kick fucking ass.

Fri, 10/18/2013 - 13:23 | Link to Comment SandiaMan
SandiaMan's picture

Fuckin Feds are buying all NSA stocks!

Fri, 10/18/2013 - 13:33 | Link to Comment Pairadimes
Pairadimes's picture

I hope the US Mint has already started the engraving for the million dollar bill.

Fri, 10/18/2013 - 13:37 | Link to Comment NaN
NaN's picture

300% per year is solid hyperinflation territory.

Fri, 10/18/2013 - 13:38 | Link to Comment tvdog
tvdog's picture

In Zimbabwe, the best (only) place to keep your money, if you had any, was in the stock market. Seen this movie before.

Fri, 10/18/2013 - 14:38 | Link to Comment AlaricBalth
AlaricBalth's picture

Zimbabwe stock chart:

"Prices go up because the value of the Fiat paper money is falling as more and more is created....... In Zimbabwe stores did not even have goods on the shelves, people were hungry, there was no water, no electricity, no public transportation, gas was sold on the black market and large quantities of paper money confiscated...and yet the Stock market kept soaring..."

Fri, 10/18/2013 - 13:38 | Link to Comment starman
starman's picture

its a fucking circus I tell.ya and take it from me after all Im a clown

Fri, 10/18/2013 - 13:51 | Link to Comment Comrade de Chaos
Comrade de Chaos's picture

Going all in on animal spirits till January, then I'll be ready to get out at will and  be buying myself some gold :) 

Let's get the consumption/markets always rise orgy started, 3.2.1 go. 


p.s. So, we will keep kicking tha can down the road for few more years, nothing to see in here, I mean, what can go wrong? Statistics is out, magic and miracles are in, untill reality bites, and man, eventually it will bite ! 

Fri, 10/18/2013 - 13:50 | Link to Comment traderjj57
traderjj57's picture

but isn t this fun, should be fun shouldn't it, all pinwheels and cotton candy, the bearded lady,

etc, oh wait thats a carnival.

Fri, 10/18/2013 - 14:35 | Link to Comment Oldrepublic
Oldrepublic's picture

good luck investing on the Caracas exchange, 50% annual inflation rate, multiple foreign exchange rates, interested in hearing from some ZH readers who lives in Caracas. 

From  the Guardian

El raspadito: Venezuelans flock abroad seeking US dollars to resell on the black market back home

Flights to neighbouring countries booked solid as Venezuelans look to exploit currency controls

Helena stood to make a killing from her one-week trip to Peru. By swiping her credit card at "a friend of a friend's" shop in Lima, she could have withdrawn as much as $2,500 (£1,600) in cash charged at the official rate of 6.30 Bolivars to a dollar. Reselling the greenbacks at the black market rate of 48 Bolivars a dollar back home in Venezuela would have given her 120,000 Bs – roughly what she makes a year working as a nanny in Caracas.

Fri, 10/18/2013 - 14:49 | Link to Comment debtor of last ...
debtor of last resort's picture

Getting in is easy.

Fri, 10/18/2013 - 15:00 | Link to Comment SouthHedge
SouthHedge's picture

Oh, so equities are a good inflation hedge?  

Fri, 10/18/2013 - 20:28 | Link to Comment Longing for the...
Longing for the old America's picture

They are better than almost anything else.

Sat, 10/19/2013 - 10:00 | Link to Comment SouthHedge
SouthHedge's picture

Why do folks on her perpetually junk equities in favor of gold then?

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